Even in a strong economy, both new graduates and working professionals must continually find new ways to set themselves apart to get the most coveted positions and advance their careers.
There are many options available, from licensure and certification to post-secondary education. But which options are best for accounting and financial professionals?
Financial Licenses and Certifications
Those seeking licensure and certification must be ready to commit. Most programs require hours of coursework and rigorous examination. Some even require further education and training to keep up with current practices.
The most common financial certifications include:
1. Certified Public Accountant (CPA)
Without question, a CPA is the most respected standard in the world of accounting. It’s also incredibly useful in finance circles. Depending on where you live, there are differences between a CPA license and certificate. In a single-tier state, the state board will grant you your CPA license and CPA certificate at the same time. In two-tier states, you are given a CPA certificate when you pass the exam, but you cannot get full privileges until you complete the CPA licensure requirements.
Becoming a CPA makes the most sense for accountants, tax specialists, and financial analysts.
CPA Pros:
- a must for those wanting a successful accounting career
- signals true financial expertise
- a significant salary bump
- competitive edge
CPA Cons
- minor focus on corporate finance, more suitable for accounting jobs
- the program costs about $3,000
- 150 hours of coursework
- 50% pass rate
2. Chartered Financial Analyst (CFA)
CFA certification is for those looking to establish themselves as experts in investments and securities. The program requires candidates to master 10 investment topics, such as ethical and professional standards, economics, and financial reporting.
CFA Pros
- highly recognized and respected
- a must for those wanting a career in asset management and equity research
- a significant salary bump
- competitive edge
CFA Cons
- pass rate below 20%
- the program costs between $4,000 and $5,000
- takes about four years to complete
3. Certified Financial Planner (CFP)
CFPs handle financial portfolios and help clients develop personalized financial plans. This certification is aimed at those wanting a career specializing in investments and
wealth management.CFP Pros
- cheaper than the previous certifications at only $2,000
- higher pass rate than CPA or CFA at 67%
- smaller course load
- competitive advantage
CFP Cons
- Narrow focus
- Not very applicable to financial careers outside of wealth management
Post-Secondary Education
Many wonder if they should pursue
post-secondary education over financial certification.
That requires a lengthy analysis and there is not enough space to cover it all, but here are a few things to consider.
An MBA will provide you with a wider range of career opportunities, ranging from consulting to investment banking. Certifications are more narrowly focused. If you know for sure that you want to be an auditor, then a CPA (and a MACC) is the better choice and far less expensive than an MBA. However, as a side note, you can use MBA credits to count towards the credit hours for your CPA.
Given how competitive the job market is, many young professionals are acquiring as much education as possible, so it’s not uncommon for someone to have a graduate degree alongside professional certification.
